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news details
Ex-MOS Power was at loggerheads with PDD officials
Allotment of Rs 2500 cr power projects
5/8/2018 11:19:55 PM
Early Times Report
Jammu, May 8: The former Minister of State for Power was reportedly at loggerheads with the officials of the Power Development Department (PDD) over allotting works to the tune of Rs 2500 crore under various schemes.
The higher officials of PDD had reportedly refused to obey the directions of the MOS purely on the instructions of a cabinet Minister.
"And the works to the tune of Rs. 931.33 cr under IPDS, PMDP and R-APDRP in five circles of J&K, transmission and distribution works in 11 districts under RGGVY, DDUGJY at estimated cost of Rs. 746.42 cr, transmission works under PMDP to the tune of Rs. 426.13 cr in J&K state and transmission works for an amount of Rs. 495.54 cr for grid stations at Nagrota and Lassipora were allotted to the companies which had given higher bids, despite having lower bids given by another company", sources said.
According to the communication forwarded by former MOS Power to the higher officials of PDD, it was amply clear that everything was not fine between the junior minister and officials of department.
In the communication, the former MOS Power had reportedly observed, "The State Cabinet had decided vide decision number 198/12/2017 dated 23/10/2017 to award the job-(Appointment of REC-PDCL as Project Implementing Agency for Distribution Works under IPDS, PMDP and R-ADPRP (Part-B) in selected circles of PDD J&K, PGCIL as PIA for works sanctioned under DDUGJY, RGGVY-II, PMDP(Rural) and Transmission works under PMDP in selected districts/regions of PDD J&K and RECTPCL as PIA for transmission works of PMDP in selected regions of J&K on nomination basis)."
He further stated, "The awardees have quoted higher rates than the prevalent marked rates and there is availability of other PSU(s), eg TCIL, whose rates and expertise are much more favourable than the awardees. The rates offered by TCIL are for PIA/supervision/implementation services for Transmission lines PMDP/Sub-stations @ 5.50 on cost plus basis (exclusive of all taxes). For PIA/Supervision/implementation services for DDUGJY/IPDS/Bharat NET/OPGW/ADSS/RAPDRP Part-B @ 6.50 on cost plus basis (exclusive of all taxes)".
The former Junior Minister had further stated that the cabinet on 23/10/2017 had also asked for renegotiating the rates with the awardee CPSU, no significant headway on the front has been witnessed.
Pertinently, the Union Minister of Power had also expressed that rates given by these CPSUs are too high and need to be brought down considerably. "These CPSUs have very little experience of carrying out PIA and PMA jobs and their turnover is too low to meet the qualification as per the information available on the official website", he had observed.
Raising question over the award of work to three CPSUs, the then Junior Minister had stated that in view of the expertise and economy, the officer of TCIL which is also a CPSU, is worth consideration as it offered rated quite lower than the rates offered by the CPSU namely PGCIL, REC-PDCL and RECTPCL.
"Given the fact that the engagement of PIA/PMA on nomination basis is normally not encouraged as exploration of competitive market rate is to be gone for, the exercise to the effect of according consideration to proposal from other PSU(s) is worthwhile and desirable. The offer of TCIL is prime facie, a competitive one and advantageous to the state exchequer as compared to PGCIL, REC-PDCL, RECTPCL.
"According consideration to the proposal of TCIL would also be in compliance with the above quoted cabinet decision of renegotiating the rates with CPSUs. The same would also meet the guidelines issued in the similar nature subjects by Finance department as well as Central Vigilance Commission", he had mentioned.
Pertinently the rates quoted by selected companies are much higher than proposed by MOS Power and their rates PIA charges of 9.5 percent(excluding all applicable taxes) of the actual discovered project cost offered by RECPDCL, PIA charges of 9.5 percent by PGCIL, PIA charges of 8 % on cost+ applicable taxes of actual discovered cost offered by PGCIL, PIA charges of 8% for Grid station Nagrota and 9 % for grid station Lassipora.
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